If a Check Correctly Written and Paid by the Bank

question 70

Multiple Choice

If a check correctly written and paid by the bank for $724 is incorrectly recorded on the company's books for $742 the appropriate treatment on the bank reconciliation would be to

• A) add $18 to the bank's balance.
• B) add $18 to the book's balance.
• C) deduct $724 from the bank's balance.
• D) deduct $724 from the book's balance.

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Definitions:

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services offered matches the amount requested.

Supply Falls

A condition in which the quantity of a product or service available in the market decreases, potentially leading to higher prices.

Surplus

The condition that occurs when supply exceeds demand, often resulting in a decrease in prices.

Shortage

A situation where the demand for a good or service exceeds its supply in a market.